Co-operative Bank updates ethical policy

Monday, 02 February 2009 06:43

The Co-operative Bank has unveiled a new "radical" ethical policy after turning away £1 billion in business.

The lender has turned down loans to firms worth £1 billion since taking an ethical stance in 1992 and after polling 80,000 customers, has now expanded its policies.

However, the bank's total commercial lending grew from £571 million in 1992 to £4.4 billion in 2008.

Firms connected with biofuels with a high global warming impact, companies that manufacture "indiscriminate" weapons such as cluster bombs, and companies that exploit great apes will be excluded.

David Anderson, the Co-operative bank's chief executive, said: "Never has it been more important that responsible lending is prudent lending and I'm pleased to say that The Co-operative Bank's ethical policy has stood us in good stead for more than 15 years now.

"The bank's ethical policy has led to more than £1 billion in unethical business being declined, but it has also contributed to a massive £3.8 billion net growth in our corporate lending."

The bank also confirmed its pledge to lend responsibly, with 28 per cent of the bank's corporate and business lending going to support social and environmental organisations.

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